BILL NUMBER: AB 1684	CHAPTERED  09/29/00

	CHAPTER   918
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	AMENDED IN SENATE   AUGUST 28, 2000
	AMENDED IN SENATE   JUNE 9, 1999

INTRODUCED BY   Committee on Information Technology (Dutra (Chair),
Bates (Vice Chair), Alquist, Briggs, and Ducheny)

                        MARCH 18, 1999

   An act to amend Sections 10290, 10290.1, 10301, 10302, 10306,
12100, and 12101.5 of, to repeal Sections 10324 and 12110 of, and to
repeal and add Section 10298 of, the Public Contract Code, relating
to public contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1684, Committee on Information Technology.  Public contracts.
   Existing law authorizes the Department of General Services to
contract with suppliers to obtain materials, supplies, equipment, and
services.
   This bill would make various corrective and clarifying changes to
these provisions, including revising provisions that authorize the
department to assist local government entities in procuring various
goods and services.  The bill would also revise provisions governing
the department's acquisition of information technology.
   Existing law relating to state agency procurement generally
requires all written contracts for the sale or hiring of materials,
supplies, or equipment in an amount of $10,000 or more, and all other
purchases or hiring of the same in an amount of $10,000 or more, to
be made or entered into with the lowest responsible bidder meeting
specifications.
   This bill would instead make that provision applicable to the
acquisition or lease of goods, increase the specified dollar amount
to $25,000, and make conforming changes in related provisions.
   This bill would revise the notice requirements where a contract or
purchase order is not to be awarded to the lowest bidder by
eliminating the requirement that the notice be by telegram.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 10290 of the Public Contract Code is amended to
read:
   10290.  As used in this chapter:
   (a) "Department" means the Department of General Services.
   (b) "Director" means the Director of General Services.
   (c) "Centralized purchasing" means the purchase for state agencies
of materials, supplies, and equipment by the Office of Procurement.

   (d) "Goods" means all types of tangible personal property,
including materials, supplies, and equipment.
   (e) "Office" means the Office of Procurement in the Department of
General Services.
   (f) "Price schedule" means an agreement between the Office of
Procurement and a supplier under which the supplier agrees to accept
orders from the office or a state agency for specified goods at set
prices for a specified period of time but which does not obligate the
office or state agencies to contract for the specified goods from
the supplier.
   (g) "Regional contract" means a contract of the same type as a
statewide contract but applicable only to specified contracting in a
particular area or region of the state.
   (h) "Statewide contract" means a contract awarded by the Office of
Procurement to one or more suppliers for the acquisition of
specified goods for a period of time, at a price, and in an amount
set forth in the contract.
   (i) "Multiple award" means a contract of indefinite quantity for
one or more similar goods, information technology, or services to
more than one supplier.
   (j) "Multiple award schedule" (MAS) is an agreement established
between the General Services Administration of the United States and
certain suppliers to do business under specific prices, terms, and
conditions for specified goods, information technology, or services.

  SEC. 2.  Section 10290.1 of the Public Contract Code is amended to
read:
   10290.1.  (a) Notwithstanding any other provision of law, in
exercising their delegation of contracting authority from the
department, state agencies may contract for goods, information
technology, or services with suppliers who have multiple award
schedules with the General Services Administration of the United
States if the supplier is willing to extend those terms, conditions,
and prices.  The department may also develop multiple award schedules
or agreements for use by state agencies in the same manner.
   (b) The department shall determine the delegation contracting
authority for agencies wishing to contract with suppliers who have
multiple award schedules.  The department shall seek input from both
customer departments and agencies and private sector suppliers.
  SEC. 3.  Section 10298 of the Public Contract Code is repealed.
  SEC. 4.  Section 10298 is added to the Public Contract Code, to
read:
   10298.  (a) The director may consolidate the needs of multiple
state agencies for goods, information technology, and services, and,
pursuant to the procedures established in Chapter 3 (commencing with
Section 12100), establish contracts, master agreements, multiple
award schedules, cooperative agreements, including agreements with
entities outside the state, and other types of agreements that
leverage the state's buying power, for acquisitions authorized under
Chapter 2 (commencing with Section 10290), Chapter 3 (commencing with
Section 12100), and Chapter 3.6 (commencing with Section 12125).
State and local agencies may contract with suppliers awarded those
contracts without further competitive bidding.
   (b) The director may make the services of the department
available, upon the terms and conditions agreed to, to any city,
county, city and county, district, or other local governmental body
or corporation empowered to expend public funds for the acquisition
of  goods, information technology, or services for assisting the
agency in acquisitions conducted pursuant to Chapter 2 (commencing
with Section 10290), Chapter 3 (commencing with Section 12100), and
Chapter 3.6 (commencing with Section 12125).  The state shall not
incur financial responsibility in connection with contracting for
local agencies under this section.
  SEC. 5.  Section 10301 of the Public Contract Code is amended to
read:
   10301.  Except in cases when the agency and the department agree
that an article of a specified brand or trade name is the only
article that will properly meet the needs of the agency, or in cases
where the State Board of Control has made a determination pursuant to
Section 10308, all contracts for the acquisition or lease of goods
in an amount of twenty-five thousand dollars ($25,000), or a higher
amount as established by the director, shall be made or entered into
with the lowest responsible bidder meeting specifications.
   For purposes of determining the lowest bid, the amount of sales
tax shall be excluded from the total amount of the bid.
  SEC. 6.  Section 10302 of the Public Contract Code is amended to
read:
   10302.  Except in cases of emergency where immediate purchase of
goods without bid is necessary for the protection of the public
health, welfare, or safety, whenever the department contracts for
goods in excess of twenty-five thousand dollars ($25,000), or a
higher amount as established by the director, the department shall
advertise in the California State Contracts Register the availability
of its solicitation, and interested suppliers, upon request, shall
be furnished with copies of the solicitation.  In addition to
advertising in the California State Contracts Register, the
department shall post in a public place a copy of the solicitation,
which shall remain posted until seven days after an award has been
made.  Whenever a  contract in excess of twenty-five thousand dollars
($25,000), or a higher amount as established by the director, is
made under this section or Section 10301 without the taking of bids,
the department shall prepare a written document stating the fact of
the contract together with the facts requiring the contract of the
goods without the taking of bids.  This document shall be maintained
by the department and shall be available as a public record.
  SEC. 7.  Section 10306 of the Public Contract Code is amended to
read:
   10306.  Whenever a contract or purchase order under this article
is not to be awarded to the lowest bidder, the bidder shall be
notified 24 hours prior to awarding the contract or purchase order to
another bidder.  Upon written request by any bidder who has
submitted a bid, notice of the proposed award shall be posted in a
public place in the offices of the department at least 24 hours prior
to awarding the contract or purchase order.  If prior to making the
award, any bidder who has submitted a bid files a protest with the
department against the awarding of the contract or purchase order on
the ground that he or she is the lowest responsible bidder meeting
specifications, the contract or purchase order shall not be awarded
until either the protest has been withdrawn or the State Board of
Control has made a final decision as to the action to be taken
relative to the protest.  In computing the 24-hour periods provided
for in this section, Saturdays, Sundays, and legal holidays shall be
excluded.
   Within 10 days after filing a protest, the protesting bidder shall
file with the State Board of Control a full and complete written
statement specifying in detail the ground of the protest and the
facts in support thereof.
  SEC. 8.  Section 10324 of the Public Contract Code is repealed.
  SEC. 9.  Section 12100 of the Public Contract Code is amended to
read:
   12100.  The Legislature finds that the unique aspects of
information technology, as defined in Section 11702 of the Government
Code, and its importance to state programs warrant a separate
acquisition authority.  The Legislature further finds that this
separate authority should enable the timely acquisition of
information technology goods and services in order to meet the state'
s needs in the most value-effective manner.
   All contracts for the acquisition of information technology goods
or services, whether by lease or purchase, shall be made by or under
the supervision of the Department of General Services.
  SEC. 10.  Section 12101.5 of the Public Contract Code is amended to
read:
   12101.5.  (a) It is the intent of the Legislature that agencies of
the State of California use an acquisition method that is compatible
with their short- and long-term fiscal needs in contracts relating
to commodities and information technology goods and services.  State
agencies should be able to specify their anticipated life cycle
requirements that would become one of the criteria for contractor
selection.  These agencies should be given the choice of suppliers to
meet statewide standardization needs, unique service requirements,
application requirements, and long-term satisfaction criteria.  There
is a need for the State of California to enter into long-term
contracts with annual cancellation and  fund-out clauses, as
required, to protect the state's interests as well as provide the
option for multiyear renewals to encourage suppliers to develop
higher levels of service and support throughout the contracts.
   (b) The state may utilize multiple awards, including federal
General Service Administration Multiple Awards Schedules and master
agreements or contracts for goods, information technology, services,
or consulting services.  For purposes of this subdivision, a multiple
award is an award of an indefinite quantity contract for one or more
similar goods, information technology, or services to more than one
supplier.  Except for possible multiple awards as permitted by this
subdivision, all the requirements of this chapter pertaining to other
types of information technology acquisitions shall be followed.  The
department shall ensure that multiple award schedules are in
compliance with all other applicable statutes.
   (c) Notwithstanding any other provision of law, state agencies, in
exercising their contracting authority delegated by the department,
may contract with suppliers who have multiple award schedules with
the General Services Administration of the United States on the same
terms, conditions, and prices if the supplier is willing to do so.
The department may also develop multiple award schedules or
agreements for use by state agencies in the same manner.  The
department shall determine the delegation contracting authority for
agencies wishing to use multiple award schedules.
  SEC. 11.  Section 12110 of the Public Contract Code is repealed.
